Water Heaters

Warm up to more efficiency & savings on the second-biggest energy user in most homes.

Get a rebate with a new, energy-efficient water heater.

How it works

DTE residential natural gas customers who currently heat their water with gas may be eligible for an instant discount on a high efficiency storage tank water heater or tankless water heater. DTE residential electric customers who currently heat their water with electricity may be eligible for an instant discount on a high efficiency electric heat pump water heater.  You don’t have to have an energy star approved unit as long as your unit meets program minimum energy requirements.

Use our Find a Contractor database to identify participating contractors who install water heaters. Your contractor will inform you about high-efficiency units that qualify for rebates. You can also refer to our Qualified Water Heaters List

Water Heaters Eligible for Rebates 

Natural Gas Water Heater

Tankless water heater 0.81 UEF

Tank water heater 0.61 UEF

Electric Water Heater

Heat Pump Water Heater 2.2 UEF or higher


Uniform Energy Factor (UEF) is the Department of Energy's metric for water heater efficiency. A higher UEF means a water heater is more energy efficient and will cost less to operate compared to similar units.

Search the DTE directory for participating contractors.

Ready to purchase a new water heater?

Our DTE Comparison Tool informs you on prices, energy usage, product performance and offers from retailers.

Limited Rebates Available

As of 05/22/2023

Electric Customers


Natural Gas Customers


Rebates funds are available on a first-come, first-served basis and customers are encouraged to apply early, as program funds are limited.

Furnace icon Water Heater Tips

Flush Your Water Heater

Flushing your water heater annually removes sediment that builds up. Flushing will help your unit run much more efficiently. You can hire a contractor, or do-it-yourselfers will find it to be a fairly simple project.

Check the Temperature

Most water heaters are set higher than 120°. By lowering the temperature setting to 120° you can save money. For every 10° reduction in temperature you can save from 3% to 5% on water heating costs. Consult your health professional first if you have a chronic condition or respiratory ailment.

Insulate for Efficiency

Insulate with a water heater blanket to prevent heat loss. Hire a contractor to ensure the blanket doesn’t cover an electric panel, gas valve or pressure release. Also insulate the first three feet of hot and cold water pipes connected to the water heater to help your unit maintain a consistent temperature.